Research On The Relation Between Stock Ownership Characteristics And Financial Relief Of Listed Companies Based On Logistic And Probit Model

The problem of financial distress relief in the field of financial management has always been an important research topic.Among them,the impact of each dimension of the equity characteristics of listed companies on financial situation has always been the focus of financial management research.At the same time,the interaction between the dimensions of equity characteristics will also bring different effects on financial distress.In recent years,most of the studies on equity characteristics and financial distress relief focus on the impact of single dimension of equity characteristics on financial distress relief.Few scholars have studied the interaction between single dimension of equity characteristics and each dimension of equity characteristics.Therefore,on the basis of previous studies,this paper combines single dimension of equity characteristics with financial distress relief.This paper studies the impact of the interaction of various dimensions of ownership characteristics on financial distress relief,and combines Logistic and Probit models for analysis.Finally,it uses Logistic comprehensive model to study the significance of the impact of various dimensions of ownership characteristics on financial distress relief.Firstly,this paper reviews the concept of financial distress relief,the influencing factors of financial distress relief,the relationship between equity characteristics and financial distress,and the related literature of financial distress relief path,and sets up the concept of financial distress relief: that is,the listed company’s stock is cancelled by ST after two years’ observation period because of financial reasons.This paper summarizes the factors affecting financial distress relief,and then chooses to study financial distress relief from the dimension of equity characteristics.Starting from the three dimensions of ownership structure,ownership concentration and ownership checks and balances,this paper first assumes financial distress relief from a single dimension.Then,from the perspective of the interaction of each dimension of ownership characteristics,it puts forward the hypothesis of the impact of the interaction of each dimension of ownership characteristics on financial distress relief,and further puts forward the application of comprehensive model to explore it.Thetheoretical hypothesis of the influence of each dimension on financial distress relief is investigated.Next,137 listed companies in financial distress from 2009 to 2014 are selected from Cathay Tai’an data as samples.According to whether the selected sample enterprises can achieve financial distress relief after two years,through the comparison and analysis of Logistic regression and Probit regression,the results show that the model fitting of Logistic and Probit is better than that of Probit,which is more suitable for this paper to carry out financial distress relief research.It is concluded that the proportion of state-owned shares is positively correlated with financial distress relief,but the degree of correlation is relatively general.The proportion of circulating shares is negatively correlated with financial distress relief,and the degree of correlation is also general.The higher the degree of ownership concentration,the more conducive to financial distress,and too high equity checks and balances will not be conducive to financial distress.The most significant factor for financial distress relief is the degree of ownership concentration,followed by the size of the company.Therefore,when the enterprise is in financial distress,if the equity of the enterprise is relatively dispersed,relatively speaking,each shareholder will think that the larger shareholders should bear the responsibility of breaking away from financial distress,so they will not pay too much attention to how to break away from financial distress.On the contrary,when the enterprise is in the state of concentration of shares,the majority shareholders of the enterprise know that the enterprise is in crisis at this time,and it is not realistic to cash out at this time.Therefore,the minority majority shareholders of the enterprise will use all their resources to help the enterprise achieve financial distress for their own interests.Therefore,this paper argues that the more advantageous environment to achieve financial distress relief is a more centralized equity environment,which is more advantageous for enterprises in the dimension of equity balance when they are not in financial distress.Under the condition of equity balance,they can make more reasonable decisions and balance the interests of large shareholders and small shareholders.The influence of controlling variable company size on financial distress is also significant.This paper considers that the influence ofcompany size on financial distress is mainly due to the same financial difficulties.For small and medium-sized enterprises,the size of company is not big,so the response will be more rapid.On the contrary,large-scale enterprises will pay more if they want to get out of financial difficulties in a short time because of their huge institutions.With the reform of state-owned enterprises in China,as well as the support of the state for small and medium-sized private enterprises and a large number of preferential decreases,large-scale enterprises will pay a higher price if they want to get out of financial difficulties in a short time.Tax policy.It is not difficult for small enterprises to get out of financial distress,so it is easier for them to get out of financial distress than for large enterprises when they are in financial distress.